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There are very specific reasons a house is a better investment than an REIT. 1. Taxes - There are tax breaks to owning 2. Property Management - For an REIT you
by JamesBarney 11y ago
There are very specific reasons a house is a better investment than an REIT.
1. Taxes - There are tax breaks to owning
2. Property Management - For an REIT you pay a property manager. If you own, no need to manage your property. Free +1.2% return on asset!
3. Loans are heavily subsidized by the government, REITs cannot get 30 year loans at 3-4% interest.
4. Occupancy - You live here. Occupancy rate 100% so take an +.6% to returns!
If the government stopped 1 and 3, technology completely automated 2, and leases were 4 years long. Then no one would recommend buying your own house as an investment.